Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Danaher Corp. (NYSE:DHR)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Danaher Corp., FCFF calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings 3,008,200  2,650,900  2,492,100  2,553,700  3,357,400 
Net noncash charges 357,200  1,266,100  911,800  441,100  267,900 
Change in operating capital 292,000  105,000  73,900  92,700  202,700 
Net cash provided by operating activities 3,657,400  4,022,000  3,477,800  3,087,500  3,828,000 
Interest payments, net of tax1 94,944  112,980  109,070  174,900  98,532 
Payments for additions to property, plant and equipment (635,500) (655,700) (619,600) (589,600) (633,000)
Proceeds from sales of property, plant and equipment 12,800  6,300  32,600  9,800  — 
Free cash flow to the firm (FCFF) 3,129,644  3,485,580  2,999,870  2,682,600  3,293,532 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Danaher Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Danaher Corp.’s FCFF increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Interest Paid, Net of Tax

Danaher Corp., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 26.40% 19.30% 16.10% 17.50% 21.80%
Interest Paid, Net of Tax
Interest payments, before tax 129,000  140,000  130,000  212,000  126,000 
Less: Interest payments, tax2 34,056  27,020  20,930  37,100  27,468 
Interest payments, net of tax 94,944  112,980  109,070  174,900  98,532 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

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2 2019 Calculation
Interest payments, tax = Interest payments × EITR
= 129,000 × 26.40% = 34,056

Enterprise Value to FCFF Ratio, Current

Danaher Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 128,756,510 
Free cash flow to the firm (FCFF) 3,129,644 
Valuation Ratio
EV/FCFF 41.14
Benchmarks
EV/FCFF, Competitors1
Becton, Dickinson & Co. 29.16
Boston Scientific Corp. 34.15
Intuitive Surgical Inc. 55.00
Medtronic PLC 21.28
Stryker Corp. 42.43
Thermo Fisher Scientific Inc. 33.30
UnitedHealth Group Inc. 17.65
EV/FCFF, Sector
Health Care Equipment & Services 25.32
EV/FCFF, Industry
Health Care 20.82

Based on: 10-K (filing date: 2020-02-21).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Danaher Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 116,134,564  87,876,644  77,809,788  70,169,467  72,073,174 
Free cash flow to the firm (FCFF)2 3,129,644  3,485,580  2,999,870  2,682,600  3,293,532 
Valuation Ratio
EV/FCFF3 37.11 25.21 25.94 26.16 21.88
Benchmarks
EV/FCFF, Competitors4
Becton, Dickinson & Co. 30.47 33.39 26.24 20.34 29.53
Boston Scientific Corp. 37.72 289.12 33.59 49.80 62.84
Intuitive Surgical Inc. 54.58 57.79 47.07 25.06 26.92
Medtronic PLC 22.07 27.88 21.24 26.12 26.23
Stryker Corp. 49.54 32.56 50.00 33.54 50.24
Thermo Fisher Scientific Inc. 28.88 27.01 25.91 25.48 23.59
UnitedHealth Group Inc. 17.68 18.83 19.24 19.74 14.59
EV/FCFF, Sector
Health Care Equipment & Services 25.25 26.98 24.24 24.43 22.50
EV/FCFF, Industry
Health Care 20.41 19.41 20.25 19.25 17.86

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

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3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 116,134,564 ÷ 3,129,644 = 37.11

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Danaher Corp.’s EV/FCFF ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.